South Korea K-Pop Crisis: Exploring the Root Causes

South Korea K-Pop Crisis: The biggest names in K-pop have been seeking new markets overseas, leaving a void in the home market.

South Korean K-pop, as well as the broader "hallyu" genre of popular culture, is experiencing something of a crisis, as domestic sales have decreased, new bands fail to ignite the same frenzy as their predecessors, and shares in the top K-pop agencies have plummeted. In anticipation of a burst of the bubble, investors are jittery.

The same performers - BlackPink, BTS, and Psy, who unleashed "Gangnam Style" on an unaware world in 2012 - are growing in popularity worldwide.

The suggestion is that by trying to broaden its appeal to a global audience — performing in foreign languages, topping the music charts in key markets around the world and being hyped on chat shows — those bands have forgotten their roots and are in danger of alienating the very people who launched their careers.

Analysts point out that Hallyu has experienced ups and downs in its popularity over the years but has always found a way to reinvent itself.

Keeping home-grown fans coming back, buying the music, and attending concerts is the industry's challenge.

Baby Monster failed to crack the Melon Top 100, a ranking for South Korean music sales, while ITZY and NMIXX saw their releases sink dramatically in their second week, The Korean Times reported earlier this month.

Similarly, sales of Le Sserafim's latest mini-album declined 20% in the second week after its release.

A lack of confidence in the bankability of performers at home has hurt the four biggest management agencies, with YG Entertainment's stock down 15% since February 1. According to ChosunIlbo, HYBE fell 19%, SM Entertainment fell 22 percent, and JYP Entertainment lost 33% of its share value in the same period.

There is no clear indication that any of these bands, plus others on the way, will be able to replace BTS as a super-group.

The industry has also been plagued by other problems, with BTS members presently performing their national service, forcing the band to take a year-long break, while other stars have been scandalized.

The industry has also been plagued by other problems, with BTS members presently performing their national service, forcing the band to take a year-long break, while other stars have been scandalized.

"In the past, South Korea produced a lot of hit television dramas that were hugely popular here and around the world," he pointed out. "But that is no longer the case and the television sector has lost its momentum. The same thing can happen with Korean movies or music," Park added.

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